Sales tax rate increased by three-eighths of one percent and receipts dedicated for housing purposes; homeownership opportunity fund, community and household stability fund, and rental opportunity fund created; fund councils created; appointments provided; reports required; and constitutional amendment proposed.

HF 3279 proposes a constitutional amendment to increase Minnesota's sales tax rate by 0.375% (three-eighths of one percent) starting July 1, 2027, through June 30, 2052. The revenue would fund three dedicated housing programs: 25% to a homeownership opportunity fund for owner-occupied housing, 25% to a community and household stability fund for homelessness prevention services, and 50% to a rental opportunity fund for rental assistance and housing development. All Minnesotans purchasing taxable goods would pay the slightly higher tax, with funds specifically targeting housing stability for vulnerable households. The amendment requires voter approval at the 2026 general election before taking effect.